At the height of the housing bubble (not boom) 6% of GDP was in housing construction. Compare that to Ireland which had 27% of its economy in construction. Now you know why Irish eyes are not smiling.
We have had a bigger drop in housing prices than there was in the Great Depression. Median housing price to income for housing buyers in the US was 5.5 at the height of the boom. Historically it has been 3. Asset bubbles and leverage...and it ends the same way every time.
http://economix.blogs.nytimes.com/2012/02/24/measuring-housings-drag-on-the-economy/
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